This invention relates generally to the art and science of fossil fuels. More particularly it relates to hydrocarbon fuels. Even more particularly it relates to intimate emulsions of water in hydrocarbon fuels to increase their efficiency and reduce the environmental pollution. This invention is concerned with not only apparatus and method for producing more efficient economic fuel but also the combustion viscosity reduction and the production of energy from the fuel for a few specific applications such as engines boilers, automobiles, boats etc.